money & Banking

When you could receive your $1,080

Millions of Australians could receive $1,080 in their bank accounts as early as next week, as Scott Morrison’s tax cut package is on track to pass through parliament.

If the legislation passes this week, low- and middle-income earners who have lodged their tax returns for the 2018-19 financial year can expect to receive up to $1,080 in a matter of days, said Treasurer Josh Frydenberg.

The $158 billion tax cut package passed through the House of Representatives on Tuesday night, and is now awaiting approval in the Senate. The Coalition needs the support of four out of six crossbenchers to succeed. While Centre Alliance senators Stirling Griff and Rex Patricks have suggested that they will back the bill, Jacqui Lambie has yet to declare her position.

One Nation’s Pauline Hanson said in June that she would not support the tax plan “in full”.

Should the Senate vote in favour of the bill without amendments, Labor leader Anthony Albanese will hold a shadow cabinet meeting on Thursday to re-assess his party’s position on stages two and three of the package.

While the Opposition supports stage one – which would give 4.5 million Australians earning $48,000 to $90,000 per year a $1,080 cut – it argues that the third stage should not be passed as the state of the global economy does not guarantee that the government will be able to afford the plan.

Stage three of the proposed package would see a flat tax rate of 30 per cent for Australians earning between $45,000 and $200,000 starting mid-2024.

“What we are going to do is to fight for making this package better for the economy and also fairer,” Albanese said on Tuesday morning.